Meta CEO Mark Zuckerberg has been discussing the issue of organizational expansion in the wake of recent layoffs following a period of rapid hiring during the pandemic. Various companies, including Match Group, Amazon, Google, and Meta, are reducing the number of middle managers to streamline their organizational structures. Zuckerberg, an early proponent of the “Great Flattening,” addressed the importance of efficient management practices during an interview with podcaster Lex Fridman. He emphasized the need for a balanced ratio of employees to managers and highlighted the benefits of a leaner organizational setup for faster decision-making and execution. As companies adapt to external uncertainties, such as geopolitical tensions and trade disputes, the trend of trimming middle management roles is gaining momentum across different industries. Amazon and Google, inspired by Meta’s approach, are restructuring their organizations to enhance efficiency and reduce bureaucratic layers. CEOs like Andy Jassy are advocating for fewer managers to create more agile and streamlined operations.
CEO Sundar Pichai informed employees in December that Google would be reducing certain roles by 10%. Pichai stated that the company had implemented changes aimed at simplifying operations and increasing efficiency. This came after Pichai’s goal for Google to become 20% more efficient in September 2022, which led to a significant round of layoffs later on, resulting in the elimination of 12,000 jobs.
In response to economic challenges, Salesforce also underwent restructuring by cutting layers of management and transitioning some managers into individual contributor roles. CEO Marc Benioff announced a workforce reduction of 10% in 2023, attributing it to pandemic-related overhiring and a difficult economic climate. Notably, middle managers accounted for a considerable portion of layoffs among white-collar employees that year.
Other companies like Match Group, Citi, and UPS have similarly announced workforce reductions and restructuring efforts to streamline their operations and improve efficiency. The trend of “flattening” organizations by reducing middle management roles has been a growing strategy across various industries.
While some experts caution that this approach could impact workforce performance and morale, companies are prioritizing operational efficiency to meet investor expectations, particularly following the challenges posed by the pandemic. Mark Zuckerberg’s perspective on avoiding complex management structures underscores the shift towards leaner organizational hierarchies.
